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Determinants of Household Expenditures on Alcohol

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  • Yen, Steven T.
  • Jensen, Helen H.

Abstract

This paper examines the determinants of household alcohol expenditures by using a nonnormal and heteroscedastic double-hurdle model to accommodate zero observations in the sample. The model is a generalization of the double-hurdle model estimated in previous studies of alcohol consumption. We also examine the effects of explanatory variables by calculating and decomposing the elasticities. Findings support the use of a more generalized error distribution. Income, region, education, and household demographics are among the significant determinants of alcohol expenditures.

Suggested Citation

  • Yen, Steven T. & Jensen, Helen H., 1995. "Determinants of Household Expenditures on Alcohol," Hebrew University of Jerusalem Archive 18549, Hebrew University of Jerusalem.
    • Handle: RePEc:ags:hebarc:18549
    DOI: 10.22004/ag.econ.18549
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    References listed on IDEAS

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    1. Amemiya, Takeshi & Powell, James L., 1981. "A comparison of the Box-Cox maximum likelihood estimator and the non-linear two-stage least squares estimator," Journal of Econometrics, Elsevier, vol. 17(3), pages 351-381, December.
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    3. Vuong, Quang H, 1989. "Likelihood Ratio Tests for Model Selection and Non-nested Hypotheses," Econometrica, Econometric Society, vol. 57(2), pages 307-333, March.
    4. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-844, September.
    5. E.A. Selvanathan, 1991. "A Cross-Country Alcohol Consumption Comparison: An application of the Rotterdam demand system," Economics Discussion / Working Papers 91-04, The University of Western Australia, Department of Economics.
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    Cited by:

    1. Fabiosa, Jacinto F., 2005. "Growing Demand for Animal-Protein-Source Products in Indonesia: Trade Implications," Hebrew University of Jerusalem Archive 18502, Hebrew University of Jerusalem.
    2. Fabiosa, Jacinto F., 2006. "Westernization of the Asian Diet: The Case of Rising Wheat Consumption in Indonesia," Hebrew University of Jerusalem Archive 18335, Hebrew University of Jerusalem.

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